Exhibit 99.1
AptarGroup Reports Record First Quarter Results on Continued Strong Momentum
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--April 20, 2011--AptarGroup, Inc. (NYSE:ATR) today reported record first quarter sales and earnings per share.
First Quarter 2011 Summary
- Reporting began for the newly realigned business segments
- Double-digit top line growth across each segment
- Consolidated sales rose 14% to record first quarter level of $576.5 million
- Food + Beverage custom tooling sales up $9 million
- Pharma segment’s strong profitability drove record earnings
- Achieved record first quarter earnings per share of $.64
FIRST QUARTER RESULTS
For the quarter ended March 31, 2011, reported sales increased 14% to a first quarter record $576.5 million from $505.5 million a year ago. Changes in currency exchange rates contributed 1% to the sales growth.
| First Quarter Segment Sales Analysis |
| (Change Over Prior Year) |
| | | | | | | | | | |
| | Beauty +
Home | | Pharma | | Food +
Beverage | | | | Total
AptarGroup |
| Product Sales (including tooling) | | 10% | | 15% | | 29% | | | | 13% |
| Currency Effects | | 1% | | 1% | | 1% | | | | 1% |
| Total Reported Growth | | 11% | | 16% | | 30% | | | | 14% |
| | | | | | | | | | |
Commenting on the quarter, Peter Pfeiffer, President and CEO, said, “I am pleased to report that the positive momentum we experienced last year continued in the first quarter of 2011. Each business segment recorded strong top line core growth over the prior year even though we are up against tough comparisons to our record performance in 2010. Demand for our Beauty + Home segment’s innovative fragrance and cosmetic dispensing systems increased in all regions with Latin America continuing to be particularly strong. Our Pharma segment also had a strong quarter with increased global demand for our industry leading pulmonary and nasal delivery systems for prescription medicines and consumer health care products. Our Food + Beverage segment posted strong sales growth that was driven by increased demand for our convenient dispensing closures as well as increased tooling sales compared to the prior year.
Pfeiffer continued, “The strong volumes across all segments in the quarter contributed to favorable capacity utilization. Some gains were offset by continued operational issues related to new dispensing closures project activity in our Beauty + Home and Food + Beverage segments, however, these issues have improved since the fourth quarter of last year. Also, raw material cost increases and higher stock option expenses negatively impacted each segment’s earnings in the quarter. In addition, we incurred higher professional fees in our Beauty + Home segment and new personnel costs associated with the expansion of our Food + Beverage segment. Overall, our consolidated operating income rose to $69.8 million, up 13% over the prior year level of $61.6 million. Reported diluted earnings per share increased 14% to a first quarter record $.64 per share, compared to $.56 per share in the prior year.”
OUTLOOK
Pfeiffer commented, “We are encouraged by the high level of project activity across all of our segments. As part of our strategic realignment, we created our Food + Beverage segment and we are evaluating locations in the U.S. for a new facility to better serve our food and beverage customers. Looking to the second quarter, we anticipate sales and earnings improvement over the prior year’s exceptionally strong results. This growth will be driven by a continuation of the momentum from the first quarter as well as new projects. We expect the input cost environment to remain challenging in the near term, but we are committed to passing on inflationary increases whenever possible. We expect diluted earnings per share to be in the range of $.72 to $.77 per share compared to $.67 per share reported last year.”
OPEN CONFERENCE CALL
There will be a conference call on Thursday, April 21, 2011 at 8:00 a.m. CDT to discuss the Company’s first quarter results for 2011. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site.
AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit the AptarGroup web site at www.aptar.com.
This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and countries in which AptarGroup operates, changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; fluctuations in the cost of raw materials, components and other input costs; the Company’s ability to increase prices, contain costs and improve productivity; the Company’s ability to successfully implement its strategic realignment; changes in capital availability or cost, including interest rate fluctuations; the competitive marketplace; fiscal and monetary policy; changes in foreign currency exchange rates; direct or indirect consequences of acts of war or terrorism; and labor relations. For additional information on these and other risks and uncertainties, please see AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and Form 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements. AptarGroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
| | | | |
| APTARGROUP, INC. |
| Condensed Consolidated Financial Statements (Unaudited) |
| | | | |
| (In Thousands, Except Per Share Data) |
| CONSOLIDATED STATEMENTS OF INCOME |
| | | | |
| | Three Months Ended |
| | March 31, |
| | 2011 | | 2010 |
| | | | |
| Net Sales | | $ | 576,518 | | | $ | 505,469 | |
| Cost of Sales (exclusive of depreciation | | | | |
| shown below) | | | 382,670 | | | | 331,156 | |
| Selling, Research & Development and | | | | |
| Administrative | | | 90,479 | | | | 78,696 | |
| Depreciation and Other Amortization | | | 33,605 | | | | 33,991 | |
| Operating Income | | | 69,764 | | | | 61,626 | |
| Other Income/(Expense): | | | | |
| Interest Expense | | | (4,620 | ) | | | (3,472 | ) |
| Interest Income | | | 1,552 | | | | 766 | |
| Miscellaneous, net | | | (421 | ) | | | (1,002 | ) |
| Income before Income Taxes | | | 66,275 | | | | 57,918 | |
| Provision for Income Taxes | | | 21,807 | | | | 18,823 | |
| Net Income | | $ | 44,468 | | | $ | 39,095 | |
| | | | |
| Net Loss/(Income) Attributable to Noncontrolling Interests | | | 9 | | | | (73 | ) |
| | | | | | | | |
| Net Income Attributable to AptarGroup, Inc. | | $ | 44,477 | | | $ | 39,022 | |
| | | | |
| Net Income Attributable to AptarGroup, Inc. Per Common Share: | | | | |
| Basic | | $ | 0.66 | | | $ | 0.58 | |
| Diluted | | $ | 0.64 | | | $ | 0.56 | |
| | | | |
| Average Numbers of Shares Outstanding: | | | | |
| Basic | | | 66,926 | | | | 67,576 | |
| Diluted | | | 69,914 | | | | 70,077 | |
| | | | | |
| APTARGROUP, INC. |
| Condensed Consolidated Financial Statements (Unaudited) |
| (continued) |
| (In Thousands) |
| CONSOLIDATED BALANCE SHEETS |
| | | | | |
| | March 31, 2011 | | | December 31, 2010 |
| ASSETS | | | | | |
| | | | | |
| Cash and Equivalents | | $ | 397,137 | | | $ | 376,427 |
| Receivables, net | | | 430,108 | | | | 357,110 |
| Inventories | | | 301,865 | | | | 272,255 |
| Other Current Assets | | | 72,521 | | | | 58,191 |
| Total Current Assets | | | 1,201,631 | | | | 1,063,983 |
| Net Property, Plant and Equipment | | | 750,111 | | | | 724,984 |
| Goodwill, net | | | 232,764 | | | | 227,029 |
| Other Assets | | | 16,542 | | | | 16,722 |
| Total Assets | | $ | 2,201,048 | | | $ | 2,032,718 |
| | | | | |
| LIABILITIES AND EQUITY | | | | | |
| | | | | |
| Short-Term Obligations | | $ | 124,515 | | | $ | 95,566 |
| Accounts Payable and Accrued Liabilities | | | 356,595 | | | | 327,756 |
| Total Current Liabilities | | | 481,110 | | | | 423,322 |
| Long-Term Obligations | | | 259,572 | | | | 258,773 |
| Deferred Liabilities | | | 73,502 | | | | 70,849 |
| Total Liabilities | | | 814,184 | | | | 752,944 |
| | | | | |
| AptarGroup, Inc. Stockholders' Equity | | | 1,386,019 | | | | 1,278,923 |
| Noncontrolling Interests in Subsidiaries | | | 845 | | | | 851 |
| Total Equity | | | 1,386,864 | | | | 1,279,774 |
| | | | | |
| Total Liabilities and Equity | | $ | 2,201,048 | | | $ | 2,032,718 |
| | | | |
| APTARGROUP, INC. |
| Condensed Consolidated Financial Statements (Unaudited) |
| (continued) |
| (In Thousands) |
| SEGMENT INFORMATION |
| | | | |
| | Three Months Ended |
| | March 31, |
| | | | |
| | 2011 | | 2010 |
NET SALES | | | | |
| Beauty + Home | | $ | 376,262 | | | $ | 339,409 | |
| Pharma | | | 132,004 | | | | 113,441 | |
| Food + Beverage | | | 68,252 | | | | 52,619 | |
| Total Net Sales | | $ | 576,518 | | | $ | 505,469 | |
| | | | |
SEGMENT INCOME (1) | | | | |
| Beauty + Home | | $ | 32,653 | | | $ | 31,111 | |
| Pharma | | | 38,888 | | | | 30,646 | |
| Food + Beverage | | | 7,572 | | | | 7,615 | |
| Corporate Expenses and Other | | | (9,770 | ) | | | (8,748 | ) |
| Income Before Interest and Taxes | | $ | 69,343 | | | $ | 60,624 | |
| Interest Expense, Net | | | (3,068 | ) | | | (2,706 | ) |
| Income before Income Taxes | | $ | 66,275 | | | $ | 57,918 | |
| | | | |
SEGMENT INCOME AS % OF NET SALES | | | | |
| Beauty + Home | | | 8.7 | % | | | 9.2 | % |
| Pharma | | | 29.5 | % | | | 27.0 | % |
| Food + Beverage | | | 11.1 | % | | | 14.5 | % |
| | | | |
Notes to Condensed Consolidated Financial Statements:
(1) - The Company evaluates performance of its business units and allocates resources based upon income before net interest expense, certain corporate expenses, and income taxes.
CONTACT:
AptarGroup, Inc.
Stephen J. Hagge
815-477-0424
